Ayoun Moussa power station

From Global Energy Monitor
This article is part of the CoalSwarm coverage of Egypt and coal
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The Ayoun Moussa power station (also known as Oyoun Mousa power station) was a proposed 2,640-megawatt (MW) coal-fired power station in Suez, Egypt.

The Egyptian Ministry of Electricity called off the project in 2019.


The map below shows Suez, the approximate location where the plant would be built.

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In April 2014, an amendment to Egypt's environmental law permitted the use of coal for cement production and electricity generation. In 2014, Egypt’s Cabinet voted to allow coal imports for industrial use.[1]

In September 2014, a memorandum of understanding was signed between Abu Dhabi-based Al Nowais Investments and Egypt's state-run power company Egyptian Electricity Holding Company (EEHC) for a 3,960 MW coal-fired power station. The plant would be built in Ayoun Moussa in the Suez area with plans to build a jetty for importing coal. At the time of the MoU there was no timeframe for when the plant would be built, although Al Nowais said the consortium aimed to complete a feasibility study by the end of the year.[2]

The law was amended again in 2015 to allow coal-fired power plants in the country, not just coal imports for industrial use.[1]

In March 2015, Egypt and Al-Nowais Investments Group signed a US$4.5 billion (ZAR62 billion) agreement with the Egyptian Electricity Holding Company to construct a 2,460MW coal-fired power plant in the Suez region.[3]

In September 2016, Mohamed Shaker, minister of electricity and renewable energy, said that technical and financial negotiations completed and the Ministry of Electricity was in the final stages of completing the agreement with Al-Nowais. A maritime quay was expected to receive the imported coal. According to Shaker, the plant would be completed in 2020.[4]

In January 2017, the Ministry of Energy informed the cabinet that the project was being delayed until the 2022-2027 economic plan. According to sources within the Ministry of Energy, Egypt had 4,000 MW of excess power, and that figure would rise to 8,000 MW with the completion of new plants in the New Administrative Capital, Borollos, and Beni Suef.[5]

In December 2017, Egyptian Ministry of Electricity and Renewable Energy allocated land to Al Nowais for project development. The Egyptian Ministry of Electricity and Renewable Energy (EERE) and Al Nowais were reportedly in negotiations for the power purchase agreement (PPA).[6] Al Nowais Investment Company proposed selling electricity from the power plant at a price of $0.058 (or roughly EGP 1.02) per kilowatt hour (kWh). The Egyptian Electricity Holding Company (EEHC) had yet to negotiate a final price.[7]

In October 2018, it was reported that the Electricity Ministry was still finalizing talks with Al Nowais over the PPA, which had been ongoing for over three years since the project was first announced.[8]

In December 2018, the Egyptian Electricity Holding Company concluded negotiations with Al Nowais for the construction of the plant, and was expected to sign the final power purchase contracts during the first quarter (Q1) of 2019, following approval from the Council of Ministers. The project would be built under the build, own, operate (BOO) system.[9]

In January 2019, Egyptian Electricity Transmission Company agreed to sign an agreement to purchase power from the plant at a value of 4.01 cents per kilowatt-hour.[10]

In July 2019, it was reported that Egyptian Electricity Holding Company (EEHC) decided to postpone the signing of contracts with AlNowais Investment Company for the construction of the plant due to surplus energy and the high costs of constructing a coal terminal in the area.[11]

In October 2019, the Ministry of Electricity terminated its agreement with the UAE company Al-Nowais to implement the plant. According to Daily News Egypt, the Electricity Ministry's officials informed Al-Nowais officials that there was no need to implement a coal-fired power station at the time. They instead agreed to discuss the implementation of renewable power plants with capacities of up to 500 MW.[12]


Al Nowais was expected to provide 70 percent of the capital, and said there were discussions with investors in Singapore, South Korea, China, and Egypt to fund the remaining 30 percent of the plant. HSBC was the financial advisor for the project.[2]

Coal source

Coal would be sourced from international markets such as South Africa, Indonesia, and others.[2]


Egyptians Against Coal was a Facebook campaign opposing the April 2014 change to Egypt's environmental law that would allow coal imports, opening the door to coal use in cement and to multiple coal-fired power plants proposed by overseas power companies.[13]

Project Details

  • Sponsor: Al Nowais Investments and Egyptian Electricity Holding Company
  • Developer: Technimont (Italy)
  • Location: Ayoun Moussa, Suez, Egypt
  • Coordinates: 29.966667, 32.55 (approximate)
  • Status: Cancelled
  • Gross Capacity: 2,640 MW (Units 1-4: 660 MW)
  • Type:
  • Start date:
  • Coal Type:
  • Coal Source: Imported (India and South Africa)
  • Source of financing: Al Nowais (70%)

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